Analysis summary
Why is CNA pulling back from shared and layered property E&S? Because rate reductions and term erosion have weakened the segment, according to the carrier's head of global national accounts property, Daniel Ehrhardt. This interview shows how CNA is deliberately accepting lower retention rather than writing business at inadequate prices, terms and conditions, echoing CEO Douglas Worman's disclosure that new business fell 50% in its national accounts property book. It delivers fast insight on why insureds are renewing property at flat or reduced valuations, how CNA is approaching data centre risk as those accounts move into national property, and why Ehrhardt sees today's rate softening as sharper than in prior cycles despite continuing catastrophe and aggregation risk.Subscribe to get comprehensive access to our exclusive analysis in the full platform.
CNA is walking away from business in the shared and layered property E&S space, as rate reductions and term erosion continue to weigh on the segment, according to the carrier’s head of global national accounts property, Daniel Ehrhardt.
“We are definitely retreating a bit, and we're going to be putting our foot on the brake in the property E&S shared and layered space as we're seeing deterioration,” the executive told Insurance Insider US.
“Our retention in those spaces, without question, is not as high as it once was, but that's very intentional,” he added.
Ehrhardt’s comments echo those made by CNA CEO Douglas Worman during the company’s Q2 earnings call in August, when he disclosed that new business was down 50% in the firm’s national accounts property book.
“We walked away when we could not write accounts for appropriate prices, terms and conditions,” Worman said at the time.
Commentary over subpar underwriting standards has been widespread in recent months, with industry sources saying the situation is getting out of hand.
Buyer-friendly changes to terms and conditions were the talk of July 1 renewals and, two weeks ago, this publication reported that concessions were going even further with many insureds renewing their commercial property insurance with flat valuations. Some have even renewed with reduced valuations, sources said.
“That’s coming from underwriting organizations not holding clients accountable, and it's happening because they’re looking for top line growth, they’re looking for business and they’re willing to turn a blind eye to it,” said Ehrhardt.
“But it’s going to come back to haunt the clients.”
The exec said that, while CNA has given relief in rates, it’s walking away from clients that aren’t “doing the right thing” in terms of updating valuations in line with inflation.
Though the carrier has no issue retreating from areas where there is clear deterioration, the firm is exploring pockets of opportunity within property, including data center accounts that are shifting from marine and builders risk lines into national property.
“As that business moves, we do look at it as an opportunity, but we’re approaching it very carefully,” Ehrhardt said.
The most pressing concern with data center underwriting, he said, is risk aggregation, particularly given the fact that these facilities are frequently constructed in areas highly-exposed to severe convective storms.
A recent Swiss Re analysis found that around 40% of US data-center capacity could sit in zones with significant tornado activity, and more than a quarter in areas exposed to frequent large hail.
“There's a significant amount of value in what is a small territory so we need to be very careful with exposure and the types of positions we're putting out there,” said Ehrhardt.
“We are approaching it with attachment points that are substantial and that, we feel, could give us a bit more breathing room due to the risk of a severe convective storm event, along with terms, conditions, and deductibles that are warranted for the locations.”
Ehrhardt's caution sits against a backdrop of rate softening which he characterized as sharper than prior cycles.
Reductions have been "much more abrupt" than in previous downturns as capital has flooded into property, driving rate cuts he described as "extremely rapid" over the past 18 to 24 months.
That appetite, and the competition it has unleashed, runs counter to the underlying risk picture.
"You've got more people driving towards property, but the industry still faces a substantial amount of cat uncertainty, secondary perils activity, and a growing concern of risk aggregation," he said.
"The property environment is still extremely volatile and it almost contradicts [what's happening in the market] – you're leaning into a space that is still very volatile."
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CNA is walking away from business in the shared and layered property E&S space, as rate reductions and term erosion continue to weigh on the segment, according to the carrier’s head of global national accounts property, Daniel Ehrhardt.
How far has CNA's national accounts property new business fallen?Ehrhardt’s comments echo those made by CNA CEO Douglas Worman during the company’s Q2 earnings call in August, when he disclosed that new business was down 50% in the firm’s national accounts property book.
How is CNA handling property valuations?Ehrhardt said that, while CNA has given relief in rates, it’s walking away from clients that aren’t “doing the right thing” in terms of updating valuations in line with inflation.
Where is CNA looking for growth in property?Though CNA has no issue retreating from areas where there is clear deterioration, the firm is exploring pockets of opportunity within property, including data center accounts that are shifting from marine and builders risk lines into national property.
What is the biggest concern in data center underwriting?The most pressing concern with data center underwriting, he said, is risk aggregation, particularly given the fact that these facilities are frequently constructed in areas highly-exposed to severe convective storms.
How much US data center capacity is exposed to tornadoes?A recent Swiss Re analysis found that around 40% of US data-center capacity could sit in zones with significant tornado activity, and more than a quarter in areas exposed to frequent large hail.
How fast have property rates fallen?Reductions have been "much more abrupt" than in previous downturns as capital has flooded into property, driving rate cuts Ehrhardt described as "extremely rapid" over the past 18 to 24 months.
By Nicola Middlemiss
2 September, 2026
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